Module 2 Flashcards
The first entrepreneurial process.
It’s the beginning of the process and considered as the most difficult. Take note of interesting trends in environment. Carefully assess the opportunity.
Opportunity spotting and assessment
The second entrepreneurial process.
A comprehensive paper that details the marketing, operational, human resource, financial, strategic direction, and tactics of the business. Core guide and direction of the entrepreneur
Developing a business plan
The third entrepreneurial process.
Calculate the resources needed to establish the business
Determining the capital needed
The fourth and last entrepreneurial process.
Use the resources allocated for the new venture. It’s the implementation.
Running the business
3s of opportunity
Seeking, screening, and seizing
An entrepreneur’s business idea that can potentially become a commercial product or service in the future
Opportunity
It involves the development of new ideas from various sources.
There’s two types of sources:
- Macroenvironmental sources
- Microenvironmental sources
Seeking the opportunity
Macroenvironmental sources
It is part of STEEPLED
These are the traditions, beliefs, customs, norms, and perceptions.
Sociocultural
Macroenvironmental sources
It is part of STEEPLED
Innovations of an existing technology.
Technological
Macroenvironmental sources
It is part of STEEPLED
Income, expenses, resources.
Economic
Macroenvironmental sources
It is part of STEEPLED
Weather, waste management
Environmental
Macroenvironmental sources
It is part of STEEPLED
Tax policy, political rights, freedom of press
Political
Macroenvironmental sources
It is part of STEEPLED
Restrict or allow business activities
Legal
Macroenvironmental sources
It is part of STEEPLED
Sales practices, accepted accounting, management, and marketing standards
Ethical
Macroenvironmental sources
It is part of STEEPLED
The characteristics of the people
Demographic
Macroenvironmental sources
A source of the current trend on what is happening in the industry
Industry
Macroenvironmental sources
New trends that can be the core business model of a new venture
New discovery or knowledge
Macroenvironmental sources
Projected new opportunities that can possibly affect the new business
Futuristic opportunities
Micromarket
Current needs and wants of potential costumers
Consumer preferences, interests, and perceptions
Micromarket
Aid the entrepreneur to develop a product or service that is unique and will surely stand out from the competition
Competitors
Micromarket
Turning unnoticed products into superstar products
Unexpected opportunities from customers
Micromarket
Look at a place where they will be able to spot a business opportunity
Location
Pushing through with the chosen opportunity and make the best out of it.
Seizing the opportunity
The process of cautiously selecting the best opportunity with effective choosing or careful diligence.
Screening the opportunity
Most important elements in compelling opportunity:
- Has superior value to costumers
- Solves a compelling problem, issue, need, want
- Potential cash cow
- Matches the entrepreneur’s skills, resources, and risk appetite
Positively improving an existing product or service
Innovation
One of the types of innovations according to the degree of distinctiveness:
It occur infrequently, and must be protected by patent, trade secret, copyright. Ex: Internet, computer, airplane
Breakthrough innovations
One of the types of innovations according to the degree of distinctiveness:
Occur more frequently than breakthrough innovations. These are technological advancements of existing products.
Ex: Wi-Fi, laptop, jet airplane
Technological innovations
One of the types of innovations according to the degree of distinctiveness:
Occurs ordinarily
Ex: Internet plans, wireless mouse, airbus
Ordinary innovations
